Course description

This eight-day dual-instructor workshop provides a detailed review of all significant IFRS requirements for the upstream oil and gas sector, including regulatory reporting and the diverse accounting practices that arise from the many commercial and contracting arrangements which are unique to it. It includes coverage of IFRSs, hands-on case studies, examples, exercises, and benefits from the interactive participation of the attendees. The program includes the latest pronouncements, and participants are brought up-to-date on all topics. In addition, participants are provided with information to assist them in researching accounting issues and monitoring future changes.

This course looks in depth at diverse accounting practices permitted by IFRS 6 within the exploration and development phase by reviewing these against benchmark treatments in US GAAP. It goes on to consider how IFRS is applied in the development and production phases. In doing so it looks at the unique features posed by joint venture operations and contracting arrangements, in particular Production Sharing Agreements. Detailed treatments of revenues, costs, accounting for taxation arrangements, conveyances and financial instruments used by the industry are considered. In addition, the detailed application of IFRS best practices in management reporting will be considered including chart of accounts, reporting by operators to partners and key financial and reserves reporting metrics used by the industry.

This course is ideal for individuals with financial responsibilities who are new to the oil and gas industry or to accountants operating in the industry that will be adopting IFRS. It will review accounting requirements from pre-exploration to production for reporting internally, externally and to partners under the unique contractual arrangements common to this industry.

Presented by two experienced instructors with both oil and gas and IFRS expertise, this program gives participants the benefit of decades of IFRS experience. Delegates receive the benefit of more than one view of IFRS and the opportunity to ask questions, receiving thorough answers to their individual questions from the presenters’ past experiences. Our specialist instructors explain the principles clearly and simply and provide real-world examples, including the practicalities of implementing IFRS.

This course answers questions such as:

How to understand and apply IFRS to oil and gas exploration, development and production activities?

When to capitalise and when to expense under IFRS during exploration and development and how does the diversity in accounting practices in the extractive industry affect financial reporting?

How do IFRS reporting requirements interact with reporting between venturers and to the State?

What are the characteristics of Production Sharing Agreements and how are these reflected in the financial statements?

What methods of units of production calculation are permitted and what is best practice?

When and how to assess unproved and proved properties for impairment?

What are the main revenue recognition issues faced by the industry?

How do different tax regimes impact upon financial reporting?

How to calculate and interpret financial and operational metrics used to analyse the costs, profitability, efficiency, and value added by a firm's exploration and production activities?

How do oil and gas companies present their financial statements when reporting under IFRS?

The implications for the oil and gas industry of the IASB's project on extractive industries and of other current IFRS developments

How does the investor in a joint venture account for its interest and how does the operator account to its partners?

How does an oil and gas company establish its chart of accounts?

What are the management accounting and reporting requirements internally and between venturers?

What does IFRS have to say about asset exchanges and conveyances of oil and gas interests?

How to account for decommissioning costs and rehabilitation funds under IFRS?

How are financial instruments used by upstream oil and gas and what are the accounting implications when applying hedge accounting as it relates to the oil and gas industry?

About provider

IASeminars is an independent financial training company operating globally and specialising in international accountancy (IFRS & US GAAP, IPSAS). Originally founded in the UK in 2002, IASeminars has since expanded to become a successful worldwide organisation offering regular courses in...